Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $9.59B
• Dividend Yield: 3.49%
• Average Volume (3M): 6.62M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.06
• Revenue Growth: 2.08%
• EPS Growth: -1.63%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.72
• Shares Outstanding: 513,913,150
• 10 Day Avg. Volume: 5,118,460
• 30 Day Avg. Volume: 6,622,443
• PEG Ratio: -0.47
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 15.91
• Enterprise Value/Market Cap: 2.66
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.15
• Enterprise Value/Ebitda: 6.15
• 1Y Price Target: $20.67
• Price Target Upside: 10.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): $83.36B

• Rating: 56 Neutral
• Price Target: $19.00 ▲(1.82% Upside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is driven primarily by constrained financial flexibility from high leverage and thin/softening profitability, partially offset by strong recent cash flow generation. Technical indicators point to a weak trend below key moving averages, while valuation is supportive (low P/E and solid dividend). The latest earnings call was constructive on execution and guidance but flagged meaningful near-term headwinds, and recent refinancing modestly improves maturity risk.

Positive Factors

Strong Cash Generation

Trailing-twelve-month operating and free cash flow materially improved versus the prior annual period, providing durable internal funding for capex, dividends, and buybacks. Strong cash flow supports ongoing investment in digital, store remodels and de-leveraging even with elevated leverage.

Accelerating Digital and Pharmacy Growth

Sustained double-digit digital growth and expanding pharmacy volumes diversify revenue mix and raise long-term customer engagement. Digital penetration and pharmacy scale increase customer frequency and margin optionality (services, immunizations, GLP-1s) supporting structural revenue growth and resilience.

Loyalty, Productivity & Tech Initiatives

Large loyalty base, a multi-year $1.5B productivity plan, and scalable AI/tech investments create structural advantages: better customer data, improved unit economics, and sustainable cost reductions. These initiatives should drive higher lifetime value and margin recovery over time.

Negative Factors

High Leverage

Debt remaining large relative to equity limits financial flexibility and raises refinancing and interest-rate sensitivity. Even with maturity extension actions, elevated leverage increases risk of cash flow strain under weaker sales or margin compression and constrains strategic optionality.

Softening Profitability

Net margin compression versus prior years reduces earnings cushion and free cash flow conversion. Lower profitability limits ability to absorb cost inflation or invest incrementally, and amplifies leverage risk since returns are generated on a smaller margin base.

Regulatory Pharmacy Headwinds (Medicare)

Medicare drug-price negotiation is a structural regulatory shift that reduces reported pharmacy sales and creates multi-year comp volatility. Even if near-neutral to profit per management, it complicates forecasting, could depress top-line growth and pressure unit economics in a high-volume business line.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. As of February 26, 2022, it operated 2,276 stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and 1,722 pharmacies, 1,317 in-store branded coffee shops, 402 adjacent fuel centers, 22 distribution centers, and 20 manufacturing facilities, as well as various digital platforms. The company was founded in 1860 and is headquartered in Boise, Idaho.

How the Company Makes Money

Albertsons Companies generates revenue primarily through the sale of groceries and related products in its supermarkets. The company's revenue model is based on both in-store sales and online grocery delivery services, which have seen significant growth in recent years. Key revenue streams include the sale of perishable goods, non-perishable items, and pharmacy products. Additionally, Albertsons benefits from its private label brands, which offer higher margins compared to national brands. The company also earns income through fuel sales at its gas stations and from various promotional partnerships with vendors and suppliers. Moreover, Albertsons has been investing in technology to enhance its e-commerce platform, which is expected to further boost sales and improve customer engagement.

Albertsons Companies Financial Statement Overview

Summary

Cash generation is a strength (improved TTM operating and free cash flow), but profitability has softened (TTM net margin ~1.1% vs ~1.9–2.3% prior) and the balance sheet is highly levered (debt-to-equity ~6.2x), limiting flexibility.

Income Statement

Revenue trends are positive overall, with TTM (Trailing-Twelve-Months) revenue up meaningfully versus the latest annual period, but profitability has softened over time. Gross margin has been relatively steady (~27–29%), while operating and net margins have compressed versus prior years (TTM net margin ~1.1% vs ~1.9–2.3% in earlier periods). Net income in TTM is lower than the last several annual periods, highlighting a weaker earnings run-rate despite decent top-line momentum.

Balance Sheet

Leverage is the key constraint. Debt remains large relative to equity, with debt-to-equity elevated in every period and rising again in TTM (about 6.2x). Equity is modest versus the asset base, which reduces balance-sheet flexibility. Return on equity is high (roughly 28–94% across periods), but it is amplified by the low equity level and high leverage, which increases risk if operating performance weakens.

Cash Flow

Cash generation is a relative strength. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are materially higher than the most recent annual period, and free cash flow growth in TTM is very strong versus that prior year. That said, cash flow conversion versus earnings is not consistently strong (free cash flow is below net income in the latest periods), and operating cash flow coverage trends are only moderate, suggesting working-capital swings or other cash uses can meaningfully impact year-to-year cash results.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	81.72B	80.39B	79.24B	77.65B	71.89B	69.69B
Gross Profit	22.24B	22.26B	22.05B	21.76B	20.72B	20.41B
EBITDA	4.15B	4.08B	4.53B	4.85B	4.87B	3.78B
Net Income	870.00M	958.60M	1.30B	1.51B	1.62B	850.20M
Balance Sheet
Total Assets	27.09B	29.31B	28.79B	28.75B	30.77B	29.39B
Cash, Cash Equivalents and Short-Term Investments	214.50M	339.20M	212.00M	477.20M	2.97B	1.78B
Total Debt	15.43B	14.18B	14.24B	15.01B	15.30B	16.07B
Total Liabilities	24.59B	25.92B	26.05B	27.14B	27.75B	28.06B
Stockholders Equity	2.50B	3.39B	2.75B	1.61B	3.02B	1.32B
Cash Flow
Free Cash Flow	2.08B	749.40M	628.20M	700.00M	1.91B	2.27B
Operating Cash Flow	3.98B	2.68B	2.66B	2.85B	3.51B	3.90B
Investing Cash Flow	-2.60B	-1.89B	-1.75B	-1.98B	-1.54B	-1.57B
Financing Cash Flow	-1.41B	-684.10M	-1.18B	-3.37B	-789.50M	-1.04B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Positive. The current price of 18.66 is above the 20-day moving average (MA) of 17.70, above the 50-day MA of 17.33, and below the 200-day MA of 18.75, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 67.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMK	67 Neutral	$1.80B	19.37	7.22%	2.06%	3.11%	6.54%
SFM	65 Neutral	$6.99B	13.96	38.43%	―	16.60%	49.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
IMKTA	60 Neutral	$1.65B	17.36	5.29%	0.93%	-5.42%	-20.80%
KR	59 Neutral	$44.15B	62.52	7.75%	2.15%	-1.77%	-70.83%
ACI	56 Neutral	$9.59B	11.92	29.65%	3.49%	2.08%	-1.63%
GO	52 Neutral	$990.20M	-211.97	-0.37%	―	7.22%	-108.99%

Albertsons Companies Corporate Events

Albertsons Companies Issues New Senior Notes to Refinance Debt

On February 2, 2026, Albertsons Companies and certain subsidiaries issued $1.2 billion of new 5.625% senior notes due 2032 and $900 million of additional 5.750% senior notes due 2034 in a private offering to institutional and non-U.S. investors under Rule 144A and Regulation S. The unsecured, guaranteed notes, which carry detailed redemption mechanics and standard high-yield covenants, are intended to refinance in full the company’s $1.35 billion 4.625% notes due 2027 and $750 million 5.875% notes due 2028 and to cover related fees and expenses, effectively extending Albertsons’ debt maturities and reshaping its capital structure while preserving financial flexibility for bondholders through change-of-control protections and covenant-based safeguards.

The most recent analyst rating on (ACI) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.

Albertsons launches refinancing to extend debt maturities

On January 22, 2026, Albertsons Companies and several subsidiaries launched a refinancing push in the bond market, announcing plans to redeem in cash the full $1.35 billion of 4.625% senior notes due 2027 and the $750 million of 5.875% senior notes due 2028, with the redemption expected to occur on February 21, 2026. To fund this move, the company priced an upsized private offering to institutional and offshore investors of $1.2 billion of new senior notes due 2032 at 5.625% and $900 million of additional 5.750% senior notes due 2034, issued at 98.5% of face value and fungible with its existing 2034 notes, with closing expected around February 2, 2026. The transaction extends Albertsons’ debt maturities and consolidates its capital structure by shifting obligations from 2027–2028 to 2032–2034, a step that could ease near-term refinancing risk and provide greater financial flexibility for operations and stakeholders, albeit at somewhat higher long-term coupon costs.

The most recent analyst rating on (ACI) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.